BILL NUMBER: AB 938	CHAPTERED  05/05/00

	CHAPTER   16
	FILED WITH SECRETARY OF STATE   MAY 5, 2000
	APPROVED BY GOVERNOR   MAY 5, 2000
	PASSED THE ASSEMBLY   APRIL 24, 2000
	PASSED THE SENATE   APRIL 13, 2000
	AMENDED IN SENATE   MARCH 8, 2000
	AMENDED IN SENATE   AUGUST 18, 1999
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Assembly Member Dutra
   (Coauthors:  Assembly Members Aroner, Ashburn, Baldwin, Bates,
Baugh, Bock, Briggs, Calderon, Campbell, Cardenas, Cardoza, Cedillo,
Corbett, Correa, Cox, Dickerson, Ducheny, Firebaugh, Florez,
Frusetta, Gallegos, Granlund, Havice, Hertzberg, House, Jackson,
Kaloogian, Kuehl, Leach, Leonard, Longville, Lowenthal, Maddox,
Maldonado, Margett, Mazzoni, Nakano, Olberg, Reyes, Runner,
Steinberg, Strom-Martin, Thompson, Thomson, Vincent, Washington,
Wayne, Wesson, and Wildman)

                        FEBRUARY 25, 1999

   An act to amend Section 1563 of the Code of Civil Procedure,
relating to escheat, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 938, Dutra.  Escheat:  military awards.
   Existing law requires all escheated property delivered to the
Controller to be sold by the Controller to the highest bidder at
public sale, as specified.
   This bill would exempt from those provisions all escheated
property consisting of military awards and decorations that is
delivered to the Controller, and would require that property to be
held in trust at the California National Guard Museum and Resource
Center subject to a claim by persons having an interest therein, as
specified.
   This bill would provide that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) Members of the United States Armed Forces have consistently
answered their nation's call to duty with honor and bravery.
   (b) Californians serve proudly and with distinction in every
branch of the United States Armed Forces.
   (c) Californians have been recognized for their distinguished
service by being honored through the awarding of Purple Hearts,
Silver Stars, and Congressional Medals of Honor, among other
commendations and awards.
   (d) Military awards and decorations are irreplaceable and are
unique symbols of the patriotism and distinguished heroism shown by
our men and women while serving in uniform.
   (e) Military awards and decorations are a crucial part of any
family's heritage and history.
   (f) Military awards and decorations are also an important part of
the heritage and culture of the State of California.
  SEC. 2.  Section 1563 of the Code of Civil Procedure is amended to
read:
   1563.  (a) Except as provided in subdivisions (b) and (d), all
escheated property delivered to the Controller under this chapter
shall be sold by the Controller to the highest bidder at public sale
in whatever city in the state affords in his or her judgment the most
favorable market for the property involved.  The Controller may
decline the highest bid and reoffer the property for sale if he or
she considers the price bid insufficient.  The Controller need not
offer any property for sale if, in his or her opinion, the probable
cost of sale exceeds the value of the property.  Any sale of
escheated property held under this section shall be preceded by a
single publication of notice thereof, at least one week in advance of
sale, in an English language newspaper of general circulation in the
county where the property is to be sold.
   (b) Securities listed on an established stock exchange within two
years following receipt by the Controller shall be sold at the
prevailing prices on that exchange.  Other securities may be sold
over the counter at prevailing prices or, with prior approval of the
State Board of Control, by such other method as the Controller may
determine to be advisable.  United States government savings bonds
and United States war bonds shall be presented to the United States
for payment.  Subdivision (a) does not apply to the property
described in this subdivision.
   (c) All escheated property consisting of military awards and
decorations that is delivered to the Controller is exempt from
subdivision (a) and shall be held in trust for the Controller at the
California National Guard Museum and Resource Center.  Any person
claiming an interest in the escheated property may file a claim to
the property pursuant to Article 4 (commencing with Section 1540).
   (d) The purchaser at any sale conducted by the Controller pursuant
to this chapter shall receive title to the property purchased, free
from all claims of the owner or prior holder thereof and of all
persons claiming through or under them.  The Controller shall execute
all documents necessary to complete the transfer of title.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to prevent the sale of priceless items of cultural
significance to the state and families residing in the state, it is
necessary that this act take effect immediately.
